UPDATE: Oracle CEO Shows Database With Sun Hardware
September 15 2009 - 10:17PM
Dow Jones News
Oracle Corp. (ORCL) Chief Executive Larry Ellison Tuesday
showcased a machine that integrates Oracle's database software with
the hardware of Sun Microsystems Inc. (JAVA), and will replace a
similar system based on technology from Hewlett-Packard Co.
Oracle, which announced it would buy Sun in a $7.4 billion deal
in April, is still awaiting regulatory approval for the
transaction. But Oracle is under mounting pressure to map out its
plans for Sun's future as rivals try to lure Sun customers.
The merger is on hold while European Commission antitrust
authorities investigate. Earlier this month they started a more
detailed investigation into the deal, citing "serious concerns"
about the possible impact the deal could have on the database
market. The investigation could take up to four months.
On Tuesday, Mr. Ellison said Oracle would launch what he
described as an online transaction processing database machine,
Exadata version 2, which incorporates Oracle's software with what
is known as FlashFire technology from Sun.
In a presentation that also included John Fowler, a senior
executive at Sun Microsystems, Mr. Ellison said the computer, which
handles both online transactions and data warehousing, is twice as
fast as its predecessor, and faster than most machines made by
rivals, including computer giant International Business Machines
Corp. (IBM) and database specialists Netezza Corp. (NZ) and
Teradata Corp. (TDC).
Oracle announced a deal a year ago to deliver the first Exadata
offerings, based on H-P hardware and an Oracle database. Oracle
confirmed yesterday those products will no longer be built. An
Oracle spokeswoman said it will continue to sell those systems
"while existing inventory is available, for those customers who
request it."
The latest announcement comes as competitors have been
aggressively pursuing Sun customers since the deal was announced,
seeking to take advantage of confusion among its customer base
about the future of Sun's product roadmap.
IBM claims to have won over 250 customers from Sun in the first
six months of 2009 and says customer defections have accelerated
since Oracle's acquisition was announced. Sun saw its share of the
global server market decline by more than one percentage point in
the second quarter of 2009, according to technology research firm
IDC.
-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455;
jessica.hodgson@dowjones.com
(Don Clark contributed to this article.)